Bajaj Finance: Fueling Growth with Record Loan Disbursements

Bajaj Finance: Fueling Growth with Record Loan Disbursements

Bajaj Finance, India’s largest non-banking financial company by assets, reported a 28% year-on-year (YoY) growth in its assets under management (AUM), reaching approximately Rs 3.98 lakh crore as of the December 2024 quarter, up from Rs 3.11 lakh crore in the same period last year.

In the October-December 2024 quarter alone, AUM rose by Rs 24,100 crore, driven by sustained demand across various lending sectors. The company also highlighted a record 12.06 million new loans booked during Q3 FY25, marking a 22% YoY increase from 9.86 million in Q3 FY24.

The customer base of Bajaj Finance grew to 97.12 million by December 31, 2024, a 21% increase from 80.41 million a year ago. The company added a record 5.03 million new customers during the quarter, demonstrating strong demand for its financial products.

Bajaj Finance’s deposit book stood at Rs 68,800 crore as of December 31, 2024, reflecting a 19% rise from Rs 58,008 crore in the previous year.

These preliminary results underscore Bajaj Finance’s consistent growth, driven by its expanding customer base and diversified product offerings. The company’s financial results for Q3 FY25 will be officially released later this month.

Following the announcement, global brokerage firm Citi initiated a 90-day positive catalyst watch on Bajaj Finance shares on January 2. This led to a surge in the stock, which rose as much as 6%, making it one of the top gainers on the Nifty 50 index.

Citi’s report noted that key drivers of growth include segments like mortgage financing, sales financing, and new business ventures. However, the firm also observed a slight increase in credit costs, expected to range between 2.2% and 2.5%.

On January 5, Bajaj Finance shares closed 0.3% higher at Rs 7,411.50 on the BSE.